In a move that boosts market confidence and transparency
Dubai Real Estate Regulatory Agency (RERA), the regulatory arm of the Dubai Land Department, announced it has completed receipt of financial statements for 70% of all real estate projects registered at RERA, by creating a new auditing system that is being implemented for the first time in the Middle East, and is compliant with the best international accounting standards and auditing practices for real estate projects.
Commenting on the news, Khalid Obaid Al Mutaiwei, Senior Director of the Real Estate Development Trust Account Department at RERA, said: ‘A new auditing system has been implemented by RERA targeting projects by real estate developers. With the beginning of every year, RERA starts receiving audited financial statements for the year ended 31st December. The new review and auditing system introduced this year is based on international best practices and standards, and saw the involvement of real estate developers and real estate auditors in its preparation and formulation.’
Al Mutaiwei noted that the new system aims to confirm the accuracy of monitoring environments in real estate development companies, as well as evaluate the risks involved in their projects, the efficiency of the company’s operational systems and the accuracy of the financial data for sold off-plan projects. In addition, the system aims to confirm real estate developers’ commitment to relevant real estate laws and regulations.
Based on the auditing process, the auditor submits results related to the observations, violations and risks related to a certain project and developer. They also submit the professional recommendations on how to deal with and avoid such observations in the future.
In his part, Eisa Saeed Ahmad Al Mansouri, Head of Escrow Account Section at RERA, said that most real estate developers are committed to submitting their financial reports to RERA, and the agency has received reports for 70% of the total number of registered real estate projects.
Al Mansouri added that he believes in the importance of these reports as a highly professional monitoring and supervision tool that keeps RERA informed and aware of all developments in real occurring in escrow accounts. The new auditing and evaluating system for registered real estate projects in Dubai marks a major step that will help enhance market confidence and transparency; two key factors that ensure the growth and prosperity of Dubai’s real estate market.